For 12 months, eCommerce store Cettire (ASX: CTT) has been scrutinised and watched like a hawk as its CEO Dean Mitz cashed out his shares in the Company consistently—first in March, then just last month. Besides that, seeing the rocky year that eCommerce has had, Cettire also dealt with financial setbacks.
Now, it is bouncing back.
Cettire has signed an agreement with renowned Italian luxury company Zegna Group to directly integrate and sell the brand’s products on Cettire’s platform. This will include Zegna’s luxury menswear arm, Zegna, and its womenswear, menswear and accessories brand, Thom Browne.
The Company will directly integrate the products from the Zegna brand into its platform. The eCommerce platform’s customers will have direct access to Zegna-branded products in all of Cettire’s markets. At the same time, they will benefit from its fulfillment capability, payment options and post-sales support.
Cettire Founder & CEO, Dean Mintz, said, “Zegna is a world-renowned brand with a rich history originating in the heart of the luxury fashion industry. With this collaboration, Cettire enables Zegna’s products to be directly available to a new and fast-growing audience of luxury customers.”
In 2021, the value of the online personal luxury goods market was valued at over $96 billion. And as per a Bain and Co. report, no matter the state of economic affairs, its value is expected to rise by 60% come 2030, led largely by the younger generations. That is good news for Cettire, which witnessed a loss of about $20 million in FY22.
Cettire is an Australia-based eCommerce company that launched in 2017. It offers a range of luxury goods online, giving customers access to over 400,000 products from more than 2,500 brands. Zegna is another feather in its cap and a rather validating one, given the year it has had.
Founded in 1910 in Trivero, Italy, by Ermenegildo Zegna, the Zegna Group designs, creates and distributes luxury menswear and accessories under the Zegna brand. Zegna acquired an 85% stake in the American luxury company, Thom Browne, back in 2018, to expand its offerings to womenswear and the youth.
In Q1 FY23 ending October 2022, Cettire saw a revenue increase of over 60% on Q1 FY22 to $84.4 million. Despite its apparent profitability (or in light of it), on November 18, Mintz sold down about $60 million worth of its shares. He claimed that it was a “relatively small portion” of his shareholding in the Company and enables Cettire greater diversification. His shares are on escrow till the release of the Company’s half-year results in Feb 2023.
As the Company continues with its self-funding strategy, it is relying on partnerships like these and expansions to help it become EBITDA positive. In FY23, it plans on tapping into one of the world’s largest luxury markets, Mainland China.
Following this announcement, Cettire’s share price rose by 2.10% to $1.46, representing its positive momentum since July 2022.
Alinda is a Business Reporter for The Sentiment
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